New orders rise 1.3% over three months through June
German factory orders increased 3.1% in June, according to data agency Destatis. Large-scale orders for machinery, equipment, and computer, electronic and optical products contributed substantially to the monthly gain.
The result exceeded the 0.4% decline expected by economists polled by The Wall Street Journal. Destatis revised May’s increase down to 0.3%.
The June increase was narrower when large-scale orders were excluded. Destatis reported that new orders were 0.5% lower than in the previous month on that basis.
The three-month comparison was positive. New orders increased 1.3% from April through June compared with the preceding three-month period.
The Wall Street Journal reported that oil and gas prices rose sharply after war broke out in the Middle East, while energy prices fell in June as tensions in the region eased.
The report also said input costs rose sharply. Demand remained resilient as businesses sought to get ahead of further disruption by stockpiling essential parts and equipment, according to the report.
Economists cited by The Wall Street Journal said the war had a disproportionate impact on competing manufacturers in Asia.